Saudi Arabia’s 100-Mile Linear City: A Troubled Megaproject

Saudi Arabia’s ambitious Neom project is encountering severe financial and logistical obstacles that threaten its grandiose vision of a future desert metropolis.

The Wall Street Journal reports that capital expenditure estimates for Neom have escalated to $8.8 trillionover 25 times the kingdom’s annual budget. An audit revealed “evidence of deliberate manipulation” of project finances by management, exposing the unrealistic goals championed by Crown Prince Mohammed bin Salman.

Project costs have been dramatically inflated across multiple fronts. Accommodation prices for proposed facilities were artificially raised to appear more financially viable. A “boutique hiking hotel” room’s price jumped from $489 to $1,866, while a “glamping” site increased from $216 to $794 per night.

The Line, a signature 106-mile skyscraper concept, has suffered significant scaling back. Originally planned to stretch 100 miles, current plans have been reduced to a mere 1.5-mile segment within the next decade. Crown Prince bin Salman has personally rejected recommendations to reduce the structure’s height from 1,600 to 1,000 feet.

Despite ambitious timelines, the project faces considerable challenges. Neom’s former CEO, Nadhmi al-Nasr, resigned in November, shortly after allegations surfaced about substantial worker fatalities during construction.

The Sindalah resort remains largely unfinished, even after a lavish $45 million launch event attended by celebrities like Will Smith and Tom Brady. Four months post-launch, golf courses and hotels remain closed.

Consulting firm McKinsey continues to profit, reportedly earning over $130 million annually for project services, though they deny involvement in financial reporting manipulation.

Currently, project leadership aims to “go vertical” by year’s end, with the first half of the initial segment targeted for completion by 2034. However, the project’s mounting complications suggest significant uncertainty.

The Neom project stands as a testament to the challenges of transforming audacious architectural visions into practical reality.

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